Business

3 Small Businesses That Need Help Collecting Debt

While the American economy has been hit hard by the pandemic, COVID-19 has been particularly challenging for small businesses — thousands of small to medium-sized companies have struggled to stay afloat in a shrinking economy, especially when facing shelter-in-place orders from local and federal sources. Many organizations partner with collection agencies to enhance their A/R turnover ratios, maximize their revenue collection, and reduce their risk.

Remember, the right collection agency for small businesses helps its client preserve its reputation and valuable relationships during the pandemic by adopting a professional yet diplomatic approach to the debt collection process. Here are three small businesses that significantly benefit from professional debt collection services during the pandemic:

IMAGE: PEXELS

1. Rental Businesses

While landlords are being urged to stop rent collection until the crisis is averted, it’s simply not an option for most rental property owners. For example, whether they collect a rental income or not, many landlords must still pay their mortgage, taxes, and essential maintenance, repair, and upkeep costs. Should landlords neglect their obligations, they may face liability issues or lose their rental property business.

Such landlords turn to debt collection agencies that specialize in rent collection. With the right professional help, they can collect their rent without breaching legal or ethical boundaries and meet their operational costs.

2. Medical Clinics

It’s a mistaken belief that medical clinics have experienced an uptick in business due to the COVID-19 pandemic. In reality, the health care industry has suffered billions in losses, with many health care facilities being forced to lay off employees and shut their doors.

Smaller clinics are the most vulnerable during this time because they have fewer resources to deal with problems such as more expensive medical supplies, reduction in outpatient visits, cancellation of elective procedures, and late payments.

What’s more, smaller clinics are extra susceptible to COVID-19 outbreaks. For example, they may not have the additional staff to manage added safety procedures or replace sick co-workers. With an ethical debt collection agency, a small clinic can recover invaluable revenue while ensuring its patients’ dignity.

3. Veterinary Clinics

Like medical clinics, veterinary clinics face numerous challenges during the COVID-19 pandemic. Keep in mind that a veterinary clinic is quite expensive to operate — the cost of salaries, equipment, supplies, procedures, and rent are sizable. When pet owners with dwindling disposable incomes misjudge the cost of treating their pets, invoices are often left unpaid.

While veterinarians don’t want to turn animals away, they also need to run their clinics. Such small businesses partner with compassionate debt collection agencies to collect payments without losing their customers.

A sympathetic debt collection agency helps veterinary clinics by negotiating with their customers. Most pet owners want to pay their dues. A good debt collection agency helps them find a way by offering them a payment plan or by reducing the size of the debt.

Of course, debtors are more agreeable when a licensed debt collection agency is involved because such agencies can report delinquent accounts to the three major credit bureaus. When debtors realize that their credit score could be affected, they usually pay their dues.

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